Menhaden Resource Efficiency PLC
Annual Report for the year ended 31 December 2021
Menhaden Resource Efficiency PLC – Annual Report
Company Summary
Menhaden Resource Efficiency PLC (formerly Menhaden PLC) (the “Company”) is an investment trust. Its shares are
listed on the premium segment of the Official List and traded on the main market of the London Stock Exchange. The
Company is a member of the Association of Investment Companies (“AIC”).
Investment Objective
The Company aims to generate long-term shareholder returns, predominantly in the form of capital growth, by investing
in businesses and opportunities that are demonstrably delivering or benefiting significantly from the efficient use of
energy and resources irrespective of their size, location or stage of development.
The Company employs Frostrow Capital LLP (“Frostrow”) as its Alternative Investment Fund Manager (“AIFM”) to provide
company management, company secretarial, administrative and marketing services. Frostrow and the Company have
jointly appointed Menhaden Capital Management LLP as the Portfolio Manager. Further details of these appointments
are provided on pages 23 and 24.
Capital Structure
The Company’s capital is composed solely of ordinary shares. Details are given on page 36 and in note 13 to the
financial statements on page 74.
ISA Status
The Company’s shares are eligible for Stocks and Shares ISAs.
Retail Investors advised by IFAs
The Company currently conducts its affairs so that its shares can be recommended by Independent Financial Advisers
(“IFAs”) in the UK to ordinary retail investors in accordance with the Financial Conduct Authority (“FCA”) rules in relation
to non-mainstream investment products and intends to continue to do so. The shares are excluded from the FCAs
restrictions which apply to non-mainstream pooled investment products because they are shares in an investment
Menhaden are forage fish that occur in great abundance in the West Atlantic Ocean. The name, Menhaden, is derived
from the Native American expression “he fertilises” referring to the widespread use of the fish as a fertiliser. Menhaden
filter vast quantities of water and play a key role in the food chain. It has been argued that the environmental movement
and fisheries ecology rose from the first collapse in the population of Menhaden in the 1860s as this was used as a
prominent example of mankind’s impact on the oceans and the importance of using resources sustainably.
Menhaden Capital PLC
Annual Report for the period from incorporation on
30 September 2014 to 31 December 2015
Menhaden Resource Efficiency PLC
Annual Report for the year ended 31 December 2021
1 2
Strategic Report
2 Company Performance
4 Portfolio Profile
5 Chairman’s Statement
8 Investment Objective and Policy
10 Investment Committee
11 Investment Process
12 Portfolio
14 Portfolio Manager’s Review
18 Environmental Impact Statement
22 Business Review
34 Board of Directors
36 Directors’ Report
40 Statement of Directors’
41 Corporate Governance Statement
47 Audit Committee Report
51 Directors’ Remuneration Report
53 Directors’ Remuneration Policy
54 Independent Auditor’s Report
3 4
Financial Statements
62 Income Statement
63 Statement of Changes in Equity
64 Statement of Financial Position
65 Statement of Cash Flows
66 Notes to the Financial Statements
Further Information
81 Shareholder Information
82 Glossary
84 How to Invest
86 Notice of Annual General Meeting
91 Explanatory Notes to the
93 Company Information
Strategic Report
Company Performance
Menhaden Resource Efficiency PLC
Annual Report for the year ended 31 December 2021
NAV per share
2020: 132.7p
Share price
2020: 99.0p
Share price discount
to NAV per share*
2020: 25.4%
NAV per share
(total return)*
2020: 13.2%
Share price
(total return)*
2020: 3.0%
Total ongoing charges*
2020: 2.0%
This report contains terminology that may be unfamiliar to some readers. The Glossary on pages 82 and 83 gives
definitions for frequently used terms.
*Alternative performance measures (“APMs”)
As at
31 December 2021
For the year ended
31 December 2021